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The Difference Between a Boxer and a Puncher

Whether you are a trader of stocks or an investor in stocks- you need to take different approaches. To me it is almost like the difference between a boxer and a slugger.

A trader that is looking for singles is like a “boxer” that uses jabs. He wants to stay out of range and danger and can be very effective. Lots of jabs, when they land, can win the fight. This was the way Ali fought for years- as the Champion.

Joe Frazier was a different kind of fighter. He was willing to absorb some blows and looked to land the big haymaker. He was willing to move forward, hurt at times, but understood landing just a couple of well times blows- the would win in the end. Frazier was also a Champion.

How you handle your capital should fit your style. The key of us is that neither Ali or Frazier can speak well anymore- they each absorbed too many head shots. The moral here is “fighting with the market” does not pay.

Not averaging down, using the Tier system, harvesting gains, minimizing losses, using pullbacks to enter positions- are all key strategies to use will investing.

My guess is that the market will move higher soon. That does not mean I want to lead with my head. The market is just like an opponent in a boxing match. You need to know who you are fighting- then come up with a plan that fits your skills.

*DISCLOSURE: No relevant positions

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